AFP CTP Practice Exams
Last updated on Oct 23,2026- Exam Code: CTP
- Exam Name: Certified Treasury Professional
- Certification Provider: AFP
- Latest update: Oct 23,2026
A portfolio manager’s investment policy states that they are not allowed to hold any investments that have extension risk.
Which type of investment should the portfolio manager avoid?
- A . REMICs
- B . Ginnie Mae MBSes
- C . Municipal bonds
- D . Treasury notes
The MICR encoding on a check provides all of the following information EXCEPT:
- A . the Fed district of the drawee bank.
- B . the payor’s bank account number.
- C . the payee bank’s institutional identification number.
- D . the dollar amount of the check.
A portfolio manager would like to purchase U.S. 50 million of 10-year notes 3 months from now, but has heard news that the Federal Reserve will start a purchasing program of longer term treasuries that will include 10-year notes. The purchase program would likely cause a lowering of market interest rates. The manager would also like to avoid having to use margin on a daily basis.
To remove the price risk that may be associated with the Federal Reserve purchasing program, the portfolio manager would MOST LIKELY enter into an:
- A . interest rate swap.
- B . interest rate collar.
- C . interest rate futures contract.
- D . interest rate forward contract.
The interest costs on commercial paper are determined by all of the following EXCEPT the:
- A . dealer fees.
- B . backup line of credit fees.
- C . rating agency fees.
- D . maturity of the paper.
All of the following statements are true about adjustable-rate preferred stocks EXCEPT:
- A . they offer tax advantages to corporate investors.
- B . they have a guaranteed return of principal at maturity.
- C . their dividends are paid before common stock dividends.
- D . their dividend rate is reset periodically.
Which of the following activities creates administrative costs associated with a concentration system?
- A . Scheduling cash transfers
- B . Monitoring short-term investments
- C . Reviewing positive pay exception reports
- D . Centralizing the check issuance process
Which of the following is NOT a consideration for treasury managers when implementing electronic communications with FSPs?
- A . Cost limitations
- B . Security concerns
- C . Physical location of FSP
- D . Telecommunications infrastructure
PTC Corporation has determined that the threshold amount for initiating a wire transfer vs. an ACH payment for concentrating funds is $60,225. Wires cost $9.00 and save one day of float.
If the opportunity cost is 5%, what is the cost of the ACH payment?
- A . $0.75
- B . $0.80
- C . $0.90
- D . $1.00
PTC Corporation has determined that the threshold amount for initiating a wire transfer vs. an ACH payment for concentrating funds is $60,225. Wires cost $9.00 and save one day of float.
If the opportunity cost is 5%, what is the cost of the ACH payment?
- A . $0.75
- B . $0.80
- C . $0.90
- D . $1.00
ABC company has a significant number of customers who are mainly consumers making monthly installment payments.
Which one of the following types of lockbox would be the MOST appropriate for ABC to use?
- A . Wholesale
- B . Retail
- C . In-house
- D . Hybrid